Gold Stabilizes Below $1900!

Market News Summary

European stock indicators retreated at the close of Friday’s trading session amid prevailing caution in global markets, coinciding with the assessment of the Federal Reserve’s future monetary policy and fresh concerns about the real estate sector in China.

The Stoxx 600 index closed down by 0.6%, recovering some of its earlier losses. Mining company stocks fell by 1.5%, while retail stocks declined by 1.2%, with almost all major sectors and stock exchanges slipping into negative territory.

Estimates from experts at Germany’s “ZEW” Institute for Economic Research indicated that the inflation rate in the Eurozone will remain above the target set by the European Central Bank, which is 2%, for years to come. The institute’s experts significantly lowered their inflation rate expectations, marking the first substantial reduction in a long period.

Dollar index (USDX)

The dollar remains stable in a sideways movement for the third consecutive trading session, and the markets in the United States are awaiting remarks from Federal Reserve Chairman Powell this week in an attempt to understand the future interest rate plan.

The dollar is currently trading near its pivot point at $103.25.

Pivot point: 103.35

Resistance level	Support level
103.55	103.10
103.80	102.85
104.20	102.40

Spot Gold (XAUUSD)

Gold rose from its five-month lows on Friday as the dollar and bond yields edged slightly lower. However, it ended the week with another decline as encouraging data from the United States boosted expectations that the Federal Reserve hasn’t finished the cycle of raising interest rates.

Spot gold traded at levels around $1888.96 per ounce, after touching its lowest point since mid-March last Thursday, concluding the week with a decrease of 1.27%.

Pivot point: 1890

Resistance level	Support level
1894	1884
1900	1880
1904	1874

Dow Jones Index (DJ30ft – US30)

US stock indices closed the Friday session negatively and incurred losses for the week, as Wall Street’s struggles continue in August.

At the close of Friday’s session, the Dow Jones Industrial Average gained 25.83 points or about 0.07% to close at 34,500.66 points. The S&P 500 index declined by 0.01% to 4,369.71 points, and the Nasdaq index decreased by 0.2%, concluding the session at 13,290.78 points.

Pivot point: 34505

Resistance level	Support level
34685	34355
34835	34175
35015	34025

US Crude (USOUSD)

Oil prices rose by about 1% on Friday amid signs of a production slowdown in the United States. However, the benchmark crudes ended their longest weekly winning streak in 2023 due to increasing concerns about global demand growth.

Brent crude futures increased by 68 cents or 0.8% to $84.80 per barrel at settlement. Similarly, West Texas Intermediate (WTI) crude futures gained 86 cents or 1.1% to $81.25 per barrel at settlement.

Pivot point: 80.20

Resistance level	Support level
81.40	79.50
82.10	78.30
83.30	77.55

Risk Statement

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